DCG IRIS Limited DCG IRIS Limited July 2013 Monthly Report (1772O)

TIDMIRIS

RNS Number : 1772O

DCG IRIS Limited

17 September 2013

DCG IRIS Limited (the "Company")

July Net Asset Values

As at 31 July 2013, the final net asset value of the Company's ordinary shares is as follows:-

Ordinary Shares

 
 Share class     Final NAV     MTD Performance   YTD Performance 
                   31 July      (Total Return)    (Total Return) 
-------------  -------------  ----------------  ---------------- 
 Sterling 
  shares        99.24p (XD)        +0.37%            +3.10% 
-------------  -------------  ----------------  ---------------- 
 

This valuation, which has been prepared in good faith by the Company's administrator, is for information purposes only and is based on the unaudited final valuation supplied by the administrators of the Company's underlying investment. Both a weekly estimate and a monthly valuation of the underlying investment may be produced as at valuation dates which do not coincide with valuation dates for the Company, may be based on a valuation provided as of a significantly earlier date, may differ materially from the actual value of the Company's portfolio and is unaudited or may be subject to little verification or other due diligence and may not comply with generally accepted accounting practices or other generally accepted valuation principles. The Company's administrator may not have sufficient information to confirm or review the completeness or accuracy of information provided by the administrators of the Company's investments.

Other risk factors which may be relevant to this valuation are set out in the Company's prospectus dated 12 November 2012.

Monthly Portfolio Review

Portfolio Commentary (provided by Credit Suisse AG, the manager of the Master Fund)(1)

Performance: The Company returned 0.37% (total return, net of fees) in July. Performance driven by our swap positions. From a trading perspective there was limited activity in relation to the IRIS Low Volatility Plus Fund. Cat bond issuance in the primary market continued to be steady with five deals closing over the course of the month. On 23 July 2013, Property Claim Service (PCS) also came out with its final loss estimate on super storm Sandy that left the overall industry loss number unchanged at $18.75bn. As per our expectations, there was no significant impact from this event on the performance of this fund.

Large Catastrophic Events: Strong thunderstorms brought record rainfall in Canada with the Toronto area experiencing significant flooding during the course of July. The estimated economic loss from the flooding is in the range of $1.65bn making this the second billion-dollar natural disaster event to occur in Canada this year. A 5.9 magnitude earthquake struck China's Gansu province, killing at least 95 people and injuring a further 2,840 on 22 July 2013. The economic losses are estimated by the Ministry of Civil Affairs to be around $3.25bn. New Zealand also experienced a magnitude 6.1 earthquake in the Cook Strait on 21 July 2013. Damage was relatively minor with the New Zealand Earthquake Commission estimating that insured losses could approach $40m. While these numbers are early estimates, we do not expect to see any impact on fund performance from these events.

Trading: July was a quiet month in terms of trading for the IRIS Low Volatility Plus Fund. The fund strategically moved out of a few cat bond positions to lock in mark-to-market profits. These sales were timed so that the fund could take positions in ILW trades with exposure to the US as well as Europe. IRIS Low Volatility Plus has also taken a small position on a remote top layer of an Australian program that we found to be well priced and diversifying.

Outlook: Cat bond issuance in 2013 is expected to continue at a slightly slower pace going into the peak of the US hurricane season. After the publication of the final PCS loss estimate on super storm Sandy, we now have a final valuation on the remaining contracts in the side-pocket of this fund. As we previously advised investors, this unchanged PCS number leaves the fund subject to no further significant impact from the event. Given that we are now in the US hurricane season, we will constantly monitor the weather and keep you updated on any meaningful hurricane activity. Overall, the fund continues to be well invested and on target to meet its performance expectations.

(1)Portfolio commentary compiled at the end of the month being reported on.

Supplementary Information

Click on, or paste the following link into your web browser, to view a full review of the DCG Iris portfolio.

http://www.rns-pdf.londonstockexchange.com/rns/1772O_-2013-9-17.pdf

This information is provided by RNS

The company news service from the London Stock Exchange

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